Department of Business

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https://hdl.handle.net/20.500.12311/1470

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Browsing Department of Business by Author "AJIKO DINNAH"

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    MICRO FINANCE SERVICES AND FINANCIAL PERFORMANCE OF SELECTED SMALL AND MEDIUM ENTERPRISES IN INDUSTRIAL CITY DIVISION
    (2024-08-30) AJIKO DINNAH
    ABSTRACT This study investigates the impact of microfinance services on the financial performance of selected small and medium enterprises (SMEs) in Industrial City Division, utilizing a cross-sectional survey design and the Solvency formula for sample size determination. The research focuses on three primary microfinance services: microloans, micro savings, and micro insurance. The findings revealed that microloans significantly improve financial performance, with a regression result indicating a 35% increase in financial performance metrics among SMEs utilizing these loans. Similarly, micro savings contributed positively, with a 28% improvement in financial performance, demonstrating their importance in enhancing business stability. Micro insurance was also found to be beneficial, with a 22% increase in financial performance, highlighting its role in risk management and financial security. The study concludes that microfinance services, particularly microloans, micro savings, and micro insurance, play a crucial role in boosting the financial performance of SMEs. The data indicates that while all three services have positive effects, microloans have the most substantial impact. Based on these findings, the study further recommends that SMEs actively engage with microfinance institutions to leverage these services effectively. It also suggests that policymakers and financial institutions enhance their support for SMEs by tailoring microfinance products to better meet the needs of small and medium-sized enterprises, ensuring sustained economic growth and development within Industrial City Division.